SKIL Infra plans to raise Rs 1,000 cr through IPO

Written by Nikita Upadhyay | Nikita Upadhyay | Mumbai | Updated: Feb 22 2011, 09:21am hrs
Skil Infrastructure is planning to raise Rs 2,000 crore for investing in segments like education, infrastructure and defence production, company chairman Nikhil Gandhi said on Monday.

We will raise Rs 1,000-crore via pre-inital public offering placements and another Rs 1,000 crore through an inital public offering (IPO), Gandhi said.

The firm has hired JM Financial, Nomura, Credit Suisse, SBI Capital Markets and Edelweiss as bankers for the offering. SKIL, which bought about 21% stake in Everonn Education last year, also controls shipbuilder Pipavav Shipyard.

An IPO has been on our cards for sometime now, but we were waiting for the right opportunity. We have started the process and will be filing the draft red herring prospectus by March-end as we think the time is right, added Gandhi.

Shares of Pipavav Shipyard and Everonn Education on Monday closed at Rs 80.5 and Rs 617.75, up 1.07% and 3.18% respectively on the Bombay Stock Exchange (BSE).

Last week, Pipavav Shipyard has signed a memorandum of understanding (MoU) with US-based Northrop Grumman Overseas, which will allow the company to focus on huge opportunities present in defence sector in India.

It had also signed an MoU in 2010 with Transocean Offshore International Ventures for repairs of its fleet of off-shore drilling units on the west coast of India. Pipavav Shipyard, for the quarter ended December 31, 2010, posted a net profit of Rs 2.6 crore compared to a net loss of Rs 39.8 crore for the quarter ended December 31, 2009.

Total income increased from Rs 178.53 crore for the quarter ended December 31, 2009 to Rs 276.96 crore for the quarter ended December 31, 2010.

Last year, in August Pipavav Shipyard had issued 25.2-million convertible warrants which had resulted in an investment of around Rs 250 crore in the company.

Also in March, Punj Lloyd exited from Pipavav Shipyard by selling 19.43% stake to SKIL Infrastructure for Rs 650 crore. With this, SKIL has a total of 39.93% stake in Pipavav (earlier 20.5% and later 19.43% Punj's stake). Later, the company made an open offer to the shareholders' and raised its stake in Pipavav to 44.8%.

Everonn Education tied-up with Microsoft last week for first academy service in India, which is expected to fetch them around Rs 40-50 crore in the next few years.